|
Hi Everyone
After three years of being an employed bookkeeper I have taken the step of going self-employed. I am targeting small businesses ie shops and cafes but before I start I have a question to ask.
I'm a bit unsure of how to treat purchases bought in for stock in order to sell. I use VT Transaction Plus and there's barely anything to use in this instance.
For the cafes, I would put all purchases to Cost of Sales>Purchases as it's nearly always fresh food/continuous cupboard stock, but let's say I get a shop full of ornaments..of course Cost of Sales>Purchases would come in, but then again those type of purchases should be stock until sold.
Hopefully you will understand what I need to know! Also, I haven't had to use any stock accounting procedures before, and have only created simple journals so please try and explain in simplified terms.
Thank you
Edited at 15 Mar 2016 06:20 PM GMT
|
